The on-going global memory and storage shortage is having a measurable impact on pricing across the South African technology market.
Mahomed Cassim, CEO of Esquire, notes that the current shortage is being driven largely by structural shifts in global demand rather than short-term supply disruptions.
“A major contributor to the current memory shortage is the rapid expansion of AI-focused data centres, particularly in the US,” Cassim explains. “These facilities are consuming enormous volumes of DRAM, SSDs, and high-capacity hard disk drives, with stock being purchased and deployed at scale. This has significantly reduced availability for traditional commercial and consumer markets.”
The increased competition for memory-related components has resulted in sustained pricing pressure throughout the supply chain. Manufacturer-level increases in DRAM and NAND pricing, combined with constrained allocations and longer lead times, have translated into higher landed costs for distributors.
Cassim says Esquire absorbed some of these increases in December and early January, but a portion has inevitably been passed on to the local market with new stocks that arrived late January and this month.
According to Kabir Ismail, GM at Esquire, the categories most impacted are those that rely heavily on memory and storage components.
“We’ve seen the most significant impact in PC components such as RAM modules and SSDs, followed closely by notebooks, desktops, and enterprise servers,” says Ismail.
“High-performance and higher-capacity configurations are particularly affected, as these are the same components being prioritised for AI and hyperscale data centre deployments.”
While pricing varies by brand and configuration, Esquire estimates the following average increases:
- Memory components (RAM, SSDs, HDDs): about 25% to 40%;
- Notebooks and desktops: from 15% to 25%; and
- Servers and enterprise systems: approximately 20% to 40%.
Entry-level products have generally experienced smaller increases, while premium and performance-oriented products have seen the sharpest rises.
Esquire expects pricing pressure to continue through at least the first half of 2026. Some stabilisation may occur later in the year as manufacturing capacity expands and supply chains adjust, but a full return to pre-shortage pricing is unlikely in the near term.
“Even as supply improves, we expect prices to settle at a new normal rather than reverting to historic lows,” Cassim adds.
The relatively weaker US dollar has provided some limited relief by offsetting part of the component-level cost increases. However, this benefit has been inconsistent and insufficient to fully counterbalance the impact of the global memory shortage and AI-driven demand.
“Esquire continues to work closely with global vendors to secure stock, manage allocations responsibly, and minimise disruption to the South African market,” Cassim says. “The current environment underscores the growing influence of AI infrastructure investment on traditional technology supply chains and pricing worldwide.”